The Significant Relationship Between Globalization And Global Business

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Globalization refers to the increasingly global relationships of culture, people, and economic activity. It is generally used to refer to economic globalization. For instant, the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import quotas. Moreover, global business will be characterized similarly as corporate alternately investment movement that takes spot crosswise over distinctive nations (Williams,2010). However, there are significant relationship between globalisation and global business. Furthermore, global business is important because working a business with respect to a worldwide level aides enterprises to extend their business share, …show more content…

Exporting means that the selling of goods and services produced in one country in another country, then they are exporting (Williams,2010). Moreover, exporting plays an important role in the economy. It is because it may affect the level of economic growth, decrease transport costs, globalisation, economies of scale and diminish tariff barriers have all helped exports become a larger share of national revenue in the post war period. On the other hands, a research notice that exporting goods and services will occur creation of jobs at relatively low capital cost, a vehicle for reducing income disparities, and development of a pool of skilled and semi-skilled workers (Lakew and Tsoka, 2015, pg69). For example, the growth in vehicle exports have created many job opportunities in car industries, such as TOYOTA factory in Japan, and Audi in Germany. Traditionally export jobs have been in manufacturing industries. Moreover, an important source of full-time employment, particularly in industrial regions. In last few years, exports have become more diversified with a greater reliance on service sector based exports. Furthermore, exporting goods and services has both advantages and disadvantages for countries involved in international trade. The advantages of exporting goods and services are having a greater degree of control over all aspects of the transaction (Williams,2010). Exporting allows a country's producers to increase proprietorship preferences and develop low-cost and differentiated products. It is reflecting as a low-risk mode of production and trade. Beside that, exporters also experience internationalization advantages which are the benefits of retaining a core competence within a company and threading it through the value chain instead of receiving a license to outsource or sell the goods or services. However, the disadvantage of exporting goods and services are

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